nicholas lovell - how to turn your freeloaders into superfans (darker music talks march '14)
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Video: www.tommydarker.com/music-talks/archive/nicholas-lovell-how-to-turn-your-freeloaders-into-superfans/TRANSCRIPT
Freeloaders, superfans and the future of
business culture
Nicholas Lovell@nicholaslovell
#DarkerMusicTalks
How do we make money when everything is going
free?
• “We’ve got to make people start valuing content again”
• “I deserve to be paid for my work”
You can• “You can’t make money from apps”
You can’t
You don’t
You need to earn the right
Free does not mean no revenues
Flip your thinking
Revenue opportunity
Marketing opportunity
Am
ou
nt
each
pers
on
is w
illin
g t
o p
ay
The Curve
The Curve – in 3 steps• Find an audience• Use technology to figure out what
they value and to talk to them again• Enable superfans
Freeloaders
Source of revenue
Word of mouth
Potential converts
Gawkers
Technology• Understand what your audience
values• Earn the right to talk to them again
Superfans
Let those who love what you do spend lots of
money on things they truly value
Let those who love what you do spend lots of
money on things they truly value
Let those who love what you do spend lots of
money on things they truly value
Let those who love what you do spend lots of
money on things they truly value
Target: $400,000
Average pledge:$38.28
An unsurprising distribution
47,946
24,636
1,090
11,530
900 148 100 10 40
10,000
20,000
30,000
40,000
50,000
60,000
$15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000
Number of pledges
Number of pledges
A very surprising distribution
719,190 739,080
65,400
1,153,000
225,000 74,000
100,000 50,000
40,000 $0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000
Double Fine Project revenue
Double Fine Project revenue
A very surprising distribution
• Total raised: $3,336,371Pledges Money
>=$250 1.3% 15.4%
>=$1,000 0.1% 6.0%
>=$100 14.7% 51.9%
The Curve for music
What are you going to give away for free?
How are you going to earn the right to talk to them
again?
What are you going to sell for 10x, 100x, 1,000x the previous “average” price?
Love your superfans
Love everyone inbetween
Love your freeloaders
Thank you
@nicholaslovell
www.nicholaslovell.com